Debt & insurance

The dos and don'ts of debt

1. Don't bury your head in the sand: Your debt will not go away. You must tackle the problem before it escalates out of control.

2. Talk: Debt can be stressful, so it is important to tell someone. If you cannot tell a member of your family, there are a number of charities who can help you cope: from counselling to debt management strategy.

3. Prioritise: Sit down and prioritise your debts. For example, meeting repayments on essential services like your mortgage and utility bills should be your first priority. If you are paying off a range of credit cards and store cards, you should pay off those with the highest rate of interest first.

4. Change: Switch the balance of your credit card to one which charges a lower rate of interest. Check our best buy tables to find the best transfer deals. Avoid "consolidation" companies — you pay more than you expect.

5. Don't panic: Despite what you may think, many companies are sympathetic to people who cannot afford repayments. Recovering debt can be expensive, so they are often willing to work out an agreement.

Help:

There are a number of free advice services to help you manage your debts.

Citizens Advice: the largest provider of free, impartial and holistic debt and money advice in the UK. For your nearest office, see your local phone book or visit citizensadvice.org.uk

National Debtline: a free telephone-based information and advice for people in England, Wales and Scotland. Call 0808 808 4000 or visit nationaldebtline.co.uk